Published on May 22, 2023

Daily Analysis For AUD/USD 22-05-2023

AUD/USD Analysis

Economic Events and Scenario for AUD/USD

Economic Events : -

GMT	Event	Impact	Currency
00:50	(Japan) Machinery Orders YoY	Medium	JPY
00:50	(Japan) Machinery Orders MoM	Medium	JPY
01:00	(Canada) Victoria Day	None	CAD
01:00	(Montenegro) Independence Day	None	EUR
02:15	(China) Loan Prime Rate 1Y	Medium	CNY
02:15	(China) Loan Prime Rate 5Y	Medium	CNY
05:30	(Netherlands) Consumer Confidence	Medium	EUR
06:00	(Estonia) PPI YoY	Low	EUR
06:00	(Estonia) PPI MoM	Low	EUR
07:30	(Switzerland) Industrial Production YoY	Medium	CHF
08:00	(Slovakia) Current Account	Low	EUR
09:00	(Greece) Current Account	Low	EUR
09:00	(Australia) Myfxbook AUDUSD Sentiment	Medium	AUD
09:00	(Switzerland) Myfxbook USDCHF Sentiment	Medium	CHF
09:00	(Japan) Myfxbook USDJPY Sentiment	Medium	JPY
09:00	(European Union) Myfxbook EURUSD Sentiment	Medium	EUR
09:00	(United Kingdom) Myfxbook GBPUSD Sentiment	Medium	GBP
09:00	(Canada) Myfxbook USDCAD Sentiment	Medium	CAD
09:00	(New Zealand) Myfxbook NZDUSD Sentiment	Medium	NZD
10:00	(Belgium) Consumer Confidence	Low	EUR
10:00	(Euro Area) Construction Output YoY	Low	EUR
10:45	(European Union) EU Bond Auction	Low	EUR
11:00	(Ireland) Wholesale Prices MoM	Low	EUR
11:00	(Ireland) Wholesale Prices YoY	Low	EUR
11:00	(Luxembourg) Unemployment Rate	Low	EUR
11:30	(Portugal) Current Account	Low	EUR
13:00	(Kosovo) Balance of Trade	Low	EUR
13:30	(United States) Fed Bullard Speech	Medium	USD
14:00	(France) 3-Month BTF Auction	Low	EUR
14:00	(France) 12-Month BTF Auction	Low	EUR
14:00	(France) 6-Month BTF Auction	Low	EUR
15:00	(Euro Area) Consumer Confidence	Medium	EUR
15:50	(United States) Fed Barkin Speech	Medium	USD
15:50	(United States) Fed Bostic Speech	Medium	USD
16:30	(United States) 3-Month Bill Auction	Low	USD
16:30	(United States) 6-Month Bill Auction	Low	USD
20:00	(El Salvador) Balance of Trade	Low	USD

Today's Scenario: - AUD/USD has dipped to an intraday low around 0.6645, reversing the early strength observed during the Asian session. The market sentiment is cautious due to a mix of macroeconomic factors and upcoming key data/events this week. It is important to note that the Australian dollar pair rebounded from its lowest levels in a month on the previous day, but has been struggling to maintain bullish momentum lately.

Despite China's ban on Micron Technology products, as reported by the Wall Street Journal (WSJ), US President Joe Biden expressed optimism about improving ties with China shortly after a dispute over an alleged spy balloon earlier this year strained relations. Biden made these remarks at the end of the Group of Seven (G7) summit in Japan, as reported by Bloomberg. Additionally, Biden mentioned that his discussion with Republican House Speaker Kevin McCarthy went well and they are scheduled to continue talks on Monday.

Buy Scenario: - For AUD/USD to aim for the First Major Resistance Level (R1) at 0.6679, it needs to stay above the pivot level at 0.6648. A move back to 0.6650 would indicate a bullish session. However, the breakout will depend on supportive news regarding the debt ceiling and central bank discussions.

If a breakout occurs, the pair could potentially test the Second Major Resistance Level (R2) at 0.6706. Further upside movement may lead to a challenge of the Third Major Resistance Level (R3) at 0.6737. Till we do not advise to buy AUD/USD.

Sell Scenario: - On the other hand, if the pair falls below the pivot level, it may encounter support at the First Major Support Level (S1) at 0.6621. Unless there is a risk-off sentiment causing a significant sell-off, the AUD/USD pair is expected to avoid dropping below $0.66 and the Second Major Support Level (S2) at 0.6589.

The Third Major Support Level (S3) is located at $0.6562. Till we do not advise to sell AUD/USD.

Support and Resistance Level: -